The analyst continued, "Primarily, VF is struggling to drive revs. (let alone in line with l-t 8% plan CAGR) and commentary that the wholesale channel is sitting on too much competitive product and reordering closer-to-need was worse than we expected. Adding risk, weakness is coming across brands. Further, while VF remains a l-t global share gainer, the market likely remains cautious ahead of the 1Q Analyst Day. Finally, while gross margin potential is positive, investors are focused on rev. growth to drive valuation, which we believe is now limited to the upside at 15.5x-16.5x ‘17. D/G as heightened concerns about mid-term rev. stabilization are now balanced with potential cold weather benefits or an acquisition."

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